appears the Honeymoon has ended between SBF and the Bahamas. The West Indian nation’s Securities Commission issued an order Thursday to freeze the assets of embattled cryptocurrency exchange FTX.

“Today, the Securities Commission of The Bahamas took action to freeze the assets of FTX Digital Markets and related parties,” the agency wrote, adding that the commission also suspended FTX’s trading registry and applied to the Supreme Court of the Bahamas that a provisional liquidator be appointed. .

The letter, sent by the Guardian of Nassau on Twitter, it follows a week of trouble for Sam Bankman-Fried and FTX, once one of the world’s largest cryptocurrency exchanges.

The agency said it is aware of statements suggesting that FTX’s assets were mismanaged, mismanaged or transferred to Alameda Research. The commission called these actions potentially illegal and said the “prudent course of action” was to put FTX Digital Markets into provisional liquidation to “preserve assets and stabilize the company.”

“The Commission is committed to working with the provisional trustee to strive to obtain the best possible outcome for FTX’s customers and other stakeholders,” the agency added.

FTX’s troubles began on November 6, 2022, when Binance CEO Changpeng “CZ” Zhao said that the world’s largest cryptocurrency exchange was liquidating their holdings of FTT, the native token of rival exchange FTX.

Binance held a sizeable amount of FTT tokens, around 23 million, worth around $529 million, according to Investopedia. When Binance announced the liquidation of his entire position, triggering a run on FTX, the value of FTT sank 85.6% and is currently trading at $3.43, down from $24.01 on the last week.

In September 2021, FTX launched its new campus in the Bahamas after moving the operation out of Hong Kong, calling the Bahamas one of the few places to establish a comprehensive framework for cryptocurrencies.

The Bahamas has embraced digital currency, including launching a central bank digital currency, the sand dollar. Along with crypto-friendly regulations, companies like OKX and FTX opened offices on the island.

In May of this year, Sam Bankman-Fried, still in the honeymoon phase of FTX’s move to the Bahamas, held a four-day conference in the Bahamas. The event attracted not only Wall Street but also Tom Brady, Gisele Bundchen, Bill Clinton, Tony Blair, Andrew Yang, Katy Perry, Orlando Bloom, Apolo Ohno, Rick Fox, Udonis Haslem and One Direction’s Liam Payne.